Bounce Energy

Deregulation in Texas refers to the process of separating the generation and retail sale of electricity from the transmission and distribution of electricity. This means that electricity consumers in Texas have the ability to choose their electricity provider, rather than being limited to a single provider. Deregulation of electricity in Texas began in 2002 with the passing of Senate Bill 7, and was fully implemented by 2005.

The main objective of this legislation was to increase competition in the energy market and to give consumers more options and control over their electricity service. This would lead to lower prices and better services. By giving consumers the power to choose their electricity providers, it allowed them to shop around for the best deals, forcing the providers to offer more competitive rates and better services.

The deregulation process has had a profound impact on the Texas energy market, allowing for the entry of new players and the growth of small and medium-sized companies. This increased competition has led to a wider variety of plans and services, as well as a reduction in electricity prices for consumers. However, it also created some challenges, such as lack of oversight and market manipulation.

To assist consumers in navigating through the options, companies like SlashPlan offers a service that helps consumers compare plans from different providers and identify the cheapest options. This can be very useful for the consumers as it can save them time and money.

It’s worth noting that some cities like San Antonio and Austin, Texas remain regulated and have some restrictions on the deregulation process. The incumbent utility in these cities still maintains and owns the local power lines and is not subject to deregulation, but they are the company that customers should call in the event of power outages.